With many start-ups currently promising to change the insurance game, there’s something of a revolution happening in the industry at the moment. Similar things were afoot just a few years ago – before it all came grinding to a halt thanks to the dot-com bubble, which didn’t just shake the tech industry but also sent shockwaves through the entire economy. In fact, the stock market has only just recovered from the crash, 17 whopping years later.
However, it did give rise to many insurance companies that did, indeed, change the way insurance was bought and sold. Amongst them, the company Esurance. With worries about another tech bubble looming, what lessons can we learn from the last dot-com bubble and how can we weather the storm when the bubble eventually bursts?
Keep your courage
Part of owning or working in a start-up is the fact that it is less stable than a traditional company. This doesn’t just include finances but also operations and even resources. You’ll have some pretty heart-hammering moments working for a start-up where a product goes significantly wrong or an investor pulls out. However, if you can hold your nerve, the start-up may just pull through and you could end up with the Facebook of insurance on your hands.
Work hard on infrastructure
As start-ups often begin as a single-man operation, or with a very small team at least, when they do grow they are rife with operational issues. What works for a couple of workers doesn’t work for a team of ten people. It is worth addressing process issues early on in the start-up’s life, as a small annoyance in the early days will become a huge problem later on.
Learn from mistakes
You might just think that the companies that failed in the last dot-com crash aren’t even worth a mention, except as a mere footnote in the biographies of Facebook et al. However, without some of these companies, we wouldn’t have the technology behind VoIP or e-commerce. One business’ failure led to another’s growth and success. Therefore, if your start-up does fail, take the concepts and the tech behind it and start again.
The insurance world is going through an interesting time lately. For traditional brokers, it can be a worry that you’ll lose your jobs to machines and some hot new start-up will do away with insurance as you know it. In the event of a dot-com crash, you could be forgiven for feeling rather relieved. However, technology endures even if the companies behind it don’t. It’s worth keeping an eye out on the newest inventions simply because they may become an integral part of your job role in the future. Crash or no crash, the future is coming, so you better get ready for it.